Thursday, June 28, 2007

Treasuries Decline After Fed Says Inflation Remains `Predominant' Concernn

(Bloomberg) -- Treasuries fell after the Federal
Reserve said inflation remained its ``predominant'' concern
while keeping the benchmark lending rate unchanged for an eighth
consecutive meeting at 5.25 percent.

``The Fed is signaling it wants it proven first that
inflation is down and will stay down,'' said Gerald Lucas,
senior investment strategist in New York at Deutsche Bank AG,
one of the 21 primary U.S. government securities dealers that
trade with the Fed. ``Inflation and the perception that the Fed
will remain on hold is what the market is reacting to.''


Read more at Bloomberg Bonds News

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